In an interview to CNBC, Jeremy Allaire, chairman and chief executive officer of Circle Internet Financial, candidly commented that all Fiats that operate as global currencies, be it US dollars or Chinese yuan, will have their own cryptocurrencies version that would be pegged to them.
“The Idea is to speed up transactions” says Allaire
According to Allaire, the reason that most countries would want to have their version of cryptocurrencies as this would speed up transactions made by using blockchain technology. With this advantage of speed, according to him, it’s inevitable for any country to stay away from it. The Company had announced in May that it plans to introduce a new cryptocurrency pegged to the U.S. dollar, called “USD Coin.” The aim of the USD Coin, according to the company was to bring mainstream financial processes into the world of cryptocurrencies and blockchain technology.
Checking on history, US Coin is not the first “Stabelcoin” backed by fiat. The most controversially popular among those was tether which was invented in 2015 and was valued at USD 1. But the coin ended up in controversies of having close relations with Bitfinex founders and its usage to rig the crypto prices. Others “stablecoin” include TrueUSD, Dai and BitCNY which are slowly but steadily picking up.
To quote Allaire
“Our focus with fiat stablecoins is we really think of it as a core building block for a crypto native global digital economy,” “Our interest is in how we take all of the tasks involved in the financial industry and move those onto a crypto native infrastructure.”
Jeremy Allaire- The Man that made Circle a crypto giant
Jeremy Allaire has been instrumental in making Circle a cryptocurrency giant from a simple P2P payments provider. Circle, when founded in 2013, was a fintech company providing peer-to-peer payments. It was founded by Jeremy Allaire and Sean Neville. The company has received over US$135 million in venture capital from 4 rounds of investments from 2013 to 2016, including US$50 million led by Goldman Sachs. It also had a mobile payment platform, called Circle Pay which allowed users to hold, send, and receive traditional fiat currencies.
It all started in 2015 when Circle included cryptocurrencies’ in its vision and in offerings after it received the first BitLicense issued from the New York State Department of Financial Services. It also received first virtual currency licensure from the British government. Up until December 2016, Circle Pay coupled to operate as a bitcoin wallet to buy and sell bitcoins, post which it ceased to provide that service. The company announced that it shifted its vision to focus resources on global social payments and future next-generation blockchain technology and hence would no more operate a consumer bitcoin wallet.
On February 26, 2018, Circle announced that they purchased Poloniex Cryptocurrency exchange for $400 million. It strengthens its portfolio of offerings when in Mar 2018 with the launching of Circle Invest, an app that provides simple service which lets one buy cryptocurrencies without any complex option. This was considered a competitor to Coinbase.
Jeremy Allaire, as we see, has been successful in making Circle a cryptocurrency services giant. His understanding of the crypto industry is phenomenal and his statements need to be taken with a pinch of salt and the way Allaire puts it all seems to be just closed to reality.
Will countries actually agree on having a cryptocurrency version of their fiats? Do let us know your views on the same
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.